A blended family can benefit from a QTIP trust

Description

Abstract: This brief article examines the situation of “Ted and Barb,” each of whom has children from a previous marriage. Ted has significantly greater wealth than his wife, and he wants to be sure it ultimately will be distributed to his biological children per his wishes. But he also wants to provide for Barb and help her provide for her own children while they’re growing up. This article shows how a qualified terminable interest property (QTIP) trust can keep the family harmonious and balance these interests.